Rate Case

ARTICLES ABOUT RATE CASE BY DATE - PAGE 3

Want to hedge against spiraling energy costs? Buy FPL stock. In the past year, shares in the utility's parent company, FPL Group Inc., have spiraled almost 40 percent. The company also posted profits of $887 million, boosted its dividend and split its stock. These are signals that FPL is quite profitable, and that Wall Street is bullish. And why not? The company is well-run and Florida's population growth and strong economy mean more customers. And, of course, state regulators allow the company to pass risks onto customers.

The Public Service Commission should conduct an in-depth review of Florida Power & Light Co.'s rates. Such an assessment must be evenhanded and thorough, otherwise the PSC risks further erosion of the public's faith in its impartiality and fairness. The opportunity for the rate review exists because FPL is hat-in-hand in Tallahassee again. Starting next January, FPL wants to jack up basic rates by $3 to $4 per month for the average 1,000-kilowatt hour bill. It's been 20 years since the utility petitioned for such an increase.

In November, Florida's highest court is scheduled to hear a complaint filed by a South Florida hospital group alleging that they were not given enough time to argue for larger rate cuts than agreed to last year by state regulators and Florida Power & Light Co. The claim was filed by the South Florida Hospital and Healthcare Association, a group of 48 hospitals that together spend about $60 million annually on electricity, said Linda Quick, the group's president....

Senior managers at FPL Group Inc. told investors Friday that they have started negotiations aimed at avoiding a rate case with Florida regulators, and might again consider buying power plants, or even a power company, outside the state this year. Chief Financial Officer Moray Dewhurst said the company is optimistic that it might be able to reach a settlement on state-set electric rates before a rate case tentatively scheduled for April. FPL, which has nearly 4 million customers in Florida, said the mood in Tallahassee is now leaning toward a negotiated deal that would oblige FPL to refund money to customers if the utility's annual revenues topped set ceilings.

A review of electric bills by state regulators might cost Florida ratepayers $10.8 million -- or $2.70 per account -- up front. Florida Power & Light Co. has asked the Public Service Commission to recoup expenses related to an in-depth, ongoing review of the company's power rates. The state's largest electric company wants to pass along the charges to consumers for outside legal help, accountants and consultants that the company is using in the rate review process. "These are some of the expenses involved in pursuing a rate case we didn't ask for," FPL spokesman Bill Swank said.

Florida regulators stunned Florida Power & Light Co. Friday by proposing to conduct an in-depth review of the utility's finances. If the Public Service Commission approves the request at its May 15 meeting, it will start the first such review of FPL in almost two decades. The utility managed to avoid a similar proposal two years ago. The PSC staff, which analyzes issues for the five-member commission, said it is concerned FPL is essentially billing its 3.7 million customers based on an antiquated structure.

Florida Power & Light Co. agreed to lower its wholesale service rates to other utilities and to pay $65 million in refunds as part of a settlement that could end a long-standing federal rate case. FPL is submitting the settlement to the federal Energy Regulatory Commission, the agency handling the rate case. If the agency approves the settlement, it could end more than five years of wrangling over rates. "We view this as really a settlement that will move us forward, resolve a lot of issues that were out there," said FPL spokeswoman Kathy Scott.

FPL Group's earnings dropped 56 percent in the second quarter as the power company felt the bite of a rate cut in Florida and a $104 million charge on its luckless purchase of several plants in Maine. The Juno Beach company said net income fell to $77 million, or 45 cents a share, from $176 million, or $1.02 a share, in last year's second quarter. FPL owns Florida Power & Light, Florida's largest utility, and FPL Energy, which invests in projects outside the state. Shareholders have known about the rate reduction and the Maine charge for months, and the quarter's earnings were a little better than what analysts had expected.

You may take notice when you see an electric rate cut on your next Florida Power & Light bill.The $350 million reduction is the largest in Florida history and drops rates back to levels not seen since 1983. The settlement was hailed as a success for the state's top consumer advocate, Jack Shreve, who hammered out the rate accord with the utility earlier this month. "Overall, it's a good settlement. It's a compromise to be sure, but it's good settlement," said FPL President Paul Evanson.

Florida regulators approved a settlement that will reduce Florida Power & Light's electric rates by about 6 percent a year, pushing through the largest rate reduction in Florida history. The Public Service Commission voted unanimously on Tuesday in favor of the three-year settlement. The utility's 3.7 million customers could see the rate cut -- about $5 a month for the average homeowner -- on their next electric bill. "It is a real breakthrough, to the benefit of consumers," said Commissioner J. Terry Deason.